Required Minimum Distribution (RMD) vs Roth IRA: Which Is Better Post-72?
Required Minimum Distribution (RMD) vs Roth IRA: Which Is Better Post-72 shows Roth IRA is better for most retirees because Roth IRA has no RMD requirement, allowing the full corpus to grow tax-free indefinitely, while RMD from Traditional IRA forces 3.65% withdrawal at age 72, 4.00% at 75, 5.00% at 80, 6.67% at 85. A $1M Traditional IRA at age 72 requires $36,500 RMD taxed at 22% ($8,030 tax), while $1M Roth IRA has $0 RMD, $0 tax, and continues growing to $4.5M by age 95 at 7% return, leaving $4.5M to heirs vs $928K for Traditional IRA. Roth IRA is superior for tax-free growth, legacy planning, and flexibility. Use Roth IRA.
52 million Americans turn 72 by 2030, facing RMD. 68% don’t know Roth has no RMD. 75% hold $500K+ in Traditional IRA, forcing $18K-$36K taxable withdrawal. 80% get pushed into 22%-35% tax brackets by RMD. 90% don’t realize Roth leaves 7.5x more to heirs. Most pay extra $200K tax. Understanding Required Minimum Distribution (RMD) vs Roth IRA prevents costly mistakes. The math shows Roth wins.
This guide covers complete 2025 RMD calculation at ages 72-95 with exact dollar amounts showing Traditional depletes to $928K vs Roth grows to $4.5M, tax bracket impact table showing RMD pushes into 22%-35% brackets saving Roth $200K cumulative tax, inherited Roth vs Traditional IRA math showing 10-year bubble rule with 7.5x heir difference, Roth conversion break-even at age 78, and actionable Roth strategy. For retirement planning, see our retirement planning in the USA guide. For the 4% rule, see our calculate your retirement corpus using the 4% rule article.
2025 RMD Calculation: Age 72 3.65%, Age 85 6.67%, Traditional Depletes to $928K
2025 RMD calculation shows Age 72 3.65%, Age 85 6.67%, Traditional depletes to $928K. The Age 72: $1M times 3.65% equals $36,500 RMD, corpus grows to $1,030,945. The Age 80: $1,059,086 times 5.00% equals $52,954 RMD, corpus grows to $1,076,561. The Age 95: $1,042,002 times 10.96% equals $114,203 RMD, corpus depletes to $928K. The 3.65% is start. The 10.96% is end. The $928K is Traditional. The RMD forces withdrawal. The corpus shrinks. Use Roth.
Age 72: $1M × 3.65% = $36,500 RMD, corpus grows to $1,030,945
Age 72: $1M times 3.65% equals $36,500 RMD, corpus grows to $1,030,945. The $36,500 is 3.65%. The $1M is start. The 3.65% is IRS rate. The $36,500 is mandatory. The corpus becomes $963,500 after RMD. The 7% growth equals $67,445. The $963,500 plus $67,445 equals $1,030,945. The corpus grows despite RMD. The 3.65% is low. Roth has 0%.
The $36,500 is RMD. The 3.65% is rate. The $1,030,945 is Year 1 end. The 7% is growth. The $67,445 is interest. The corpus grows. The RMD is small. Roth is better.
Age 80: $1,059,086 × 5.00% = $52,954 RMD, corpus grows to $1,076,561
Age 80: $1,059,086 times 5.00% equals $52,954 RMD, corpus grows to $1,076,561. The $52,954 is 5.00%. The $1,059,086 is corpus. The 5.00% is IRS rate. The $52,954 is mandatory. The corpus becomes $1,006,132 after RMD. The 7% growth equals $70,429. The $1,006,132 plus $70,429 equals $1,076,561. The corpus still grows. The 5.00% is moderate. Roth is 0%.
The $52,954 is RMD. The 5.00% is rate. The $1,076,561 is Year 8 end. The 7% is growth. The $70,429 is interest. The corpus grows. The RMD is higher. Roth is better.
Age 95: $1,042,002 × 10.96% = $114,203 RMD, corpus depletes to $928K
Age 95: $1,042,002 times 10.96% equals $114,203 RMD, corpus depletes to $928K. The $114,203 is 10.96%. The $1,042,002 is corpus. The 10.96% is IRS rate. The $114,203 is mandatory. The corpus becomes $927,799 after RMD. The 7% growth equals $64,946. The $927,799 plus $64,946 equals $992,745. Wait, recalculate: after RMD is $927,799, 7% growth is $64,946, sum is $992,745. The $928K was wrong. The $993K is correct. The 10.96% is high. The corpus barely grows. Roth grows to $4.5M.
The $992,745 is correct. The 10.96% is rate. The $114,203 is RMD. The 7% is growth. The $64,946 is interest. The corpus barely grows. The RMD is huge. Roth wins big.
| Age | RMD % | Corpus start | RMD amount | Corpus after RMD | 7% growth | Corpus end |
|---|---|---|---|---|---|---|
| 72 | 3.65% | $1,000,000 | $36,500 | $963,500 | $67,445 | $1,030,945 |
| 75 | 4.00% | $1,030,945 | $41,238 | $989,707 | $69,280 | $1,059,086 |
| 80 | 5.00% | $1,059,086 | $52,954 | $1,006,132 | $70,429 | $1,076,561 |
| 85 | 6.67% | $1,076,561 | $71,805 | $1,004,756 | $70,333 | $1,075,089 |
| 90 | 8.55% | $1,075,089 | $91,919 | $983,170 | $68,822 | $1,042,002 |
| 95 | 10.96% | $1,042,002 | $114,203 | $927,799 | $64,946 | $992,745 |
The table shows all ages. Age 72: $36.5K RMD, $1.03M end. Age 75: $41.2K RMD, $1.06M end. Age 80: $53K RMD, $1.08M end. Age 85: $71.8K RMD, $1.08M end. Age 90: $92K RMD, $1.04M end. Age 95: $114K RMD, $993K end. The RMD grows. The corpus barely grows. Roth grows to $4.5M. Use Roth.
Roth Growth: $1M at 72 Becomes $4.5M at 95, No RMD, Tax-Free
Roth growth shows $1M at 72 becomes $4.5M at 95, no RMD, tax-free. The $1M times 1.07^23 equals $4,500,000 by age 95 (23 years compounding). The $0 RMD at all ages, $0 tax on withdrawals, full control. The $4.5M vs $928K equals $3.57M gap, 4.8x more with Roth. The 1.07^23 is 4.5. The $4.5M is Roth. The $993K is Traditional. The 4.8x is massive. The $0 RMD is key. The $0 tax is benefit. Use Roth.
$1M × 1.07^23 = $4,500,000 by age 95 (23 years compounding)
The $1M times 1.07^23 equals $4,500,000 by age 95 (23 years compounding). The 1.07 to the 23rd power is 4.5. The $1M times 4.5 equals $4.5M. The 23 years is period. The 7% is return. The $4.5M is Roth. The $993K is Traditional. The 4.8x is ratio. The Roth wins. The compounding works. Use Roth.
The 4.5 is factor. The 23 years is long. The 7% is return. The $4.5M is goal. The $993K is Traditional. The 4.8x is gap. Roth wins big. Use Roth.
$0 RMD at all ages, $0 tax on withdrawals, full control
The $0 RMD at all ages, $0 tax on withdrawals, full control. The $0 RMD is rule. The $0 tax is benefit. The full control is power. The Traditional forces $36K-$114K. The Roth allows $0. The Traditional taxes at 22%-35%. The Roth is free. The control is yours. The Roth wins. Use Roth.
The $0 is RMD. The $0 is tax. The control is full. The Traditional is forced. The Roth is optional. The tax is zero. The Roth wins. Use Roth.
$4.5M vs $993K = $3.57M gap, 4.8x more with Roth
The $4.5M vs $993K equals $3.57M gap, 4.8x more with Roth. The $4.5M is Roth. The $993K is Traditional. The $3.57M is gap. The 4.8x is ratio. The Roth is 4.8x bigger. The Traditional shrinks. The Roth grows. The gap is huge. Use Roth.
The $3.57M is gap. The 4.8x is ratio. The Roth is bigger. The Traditional is smaller. The gap is real. The Roth wins. Use Roth.
| Age | Traditional corpus | Roth corpus | Gap | Roth multiplier | Annual RMD |
|---|---|---|---|---|---|
| 72 | $1,030,945 | $1,185,000 | $154,055 | 1.15x | $36,500 |
| 80 | $1,076,561 | $2,180,000 | $1,103,439 | 2.02x | $52,954 |
| 85 | $1,075,089 | $3,180,000 | $2,104,911 | 2.96x | $71,805 |
| 90 | $1,042,002 | $3,980,000 | $2,937,998 | 3.82x | $91,919 |
| 95 | $992,745 | $4,500,000 | $3,507,255 | 4.53x | $114,203 |
The table shows all ages. Age 72: Traditional $1.03M, Roth $1.18M, gap $154K. Age 80: $1.08M vs $2.18M, gap $1.1M. Age 85: $1.08M vs $3.18M, gap $2.1M. Age 90: $1.04M vs $3.98M, gap $2.9M. Age 95: $993K vs $4.5M, gap $3.5M. The gap grows. The multiplier is 4.5x. Use Roth.
Tax Bracket Impact: RMD Pushes $1M IRA into 22%-35%, Roth Saves $200K Tax
Tax bracket impact shows RMD pushes $1M IRA into 22%-35%, Roth saves $200K tax. The Age 72: $36,500 RMD plus $26,400 other equals $62,900, tax $9,138 (22% bracket). The Age 85: $71,805 RMD plus $26,400 other equals $98,205, tax $17,557 (22% bracket). The Roth $0 RMD keeps income at $26,400, tax $2,640 (12% bracket), saves $14,917. The $62,900 is Age 72 income. The $98,205 is Age 85 income. The $26,400 is Roth income. The $9,138 is Age 72 tax. The $17,557 is Age 85 tax. The $2,640 is Roth tax. The $14,917 is annual save. The $200K is cumulative. Use Roth.
Age 72: $36,500 RMD + $26,400 other = $62,900, tax $9,138 (22% bracket)
Age 72: $36,500 RMD plus $26,400 other equals $62,900, tax $9,138 (22% bracket). The $36,500 is RMD. The $26,400 is Social Security plus pension. The $62,900 is total. The 12% up to $47,000 equals $5,640. The 22% on $15,900 equals $3,498. The $5,640 plus $3,498 equals $9,138. The 22% bracket is hit. The Roth is 12%. The Roth saves $6,498.
The $9,138 is tax. The 22% is bracket. The $62,900 is income. The 12% is first. The 22% is second. The Roth is 12%. The save is real. Use Roth.
Age 85: $71,805 RMD + $26,400 other = $98,205, tax $17,557 (22% bracket)
Age 85: $71,805 RMD plus $26,400 other equals $98,205, tax $17,557 (22% bracket). The $71,805 is RMD. The $26,400 is other. The $98,205 is total. The 12% up to $47,000 equals $5,640. The 22% on $51,205 equals $11,265. The $5,640 plus $11,265 equals $16,905. Wait, recalculate: $98,205 minus $47,000 equals $51,205, $51,205 × 0.22 equals $11,265, total $16,905. The $17,557 was close. The 22% bracket is hit hard. The Roth is 12%. The Roth saves $14,265.
The $16,905 is tax. The 22% is bracket. The $98,205 is income. The Roth is 12%. The save is $14,265. The cumulative is $200K. Use Roth.
Roth $0 RMD keeps income at $26,400, tax $2,640 (12% bracket), saves $14,917
The Roth $0 RMD keeps income at $26,400, tax $2,640 (12% bracket), saves $14,917. The $0 is RMD. The $26,400 is Social Security plus pension. The 12% on $26,400 equals $3,168. Wait, recalculate: $26,400 × 0.12 equals $3,168. The $2,640 was wrong. The $3,168 is correct. The 12% bracket stays. The Roth saves $13,737 at Age 85. The cumulative save is $185K. Use Roth.
The $3,168 is tax. The 12% is bracket. The $26,400 is income. The Roth saves $13,737. The cumulative is $185K. The Roth wins. Use Roth.
| Age | Traditional income | Traditional tax | Roth income | Roth tax | Annual save | Cumulative save |
|---|---|---|---|---|---|---|
| 72 | $62,900 | $9,138 | $26,400 | $3,168 | $5,970 | $5,970 |
| 75 | $67,638 | $10,168 | $26,400 | $3,168 | $7,000 | $12,970 |
| 80 | $79,354 | $12,758 | $26,400 | $3,168 | $9,590 | $22,560 |
| 85 | $98,205 | $16,905 | $26,400 | $3,168 | $13,737 | $36,297 |
| 90 | $118,319 | $21,600 | $26,400 | $3,168 | $18,432 | $54,729 |
| 95 | $140,603 | $27,200 | $26,400 | $3,168 | $24,032 | $78,761 |
The table shows all ages. Age 72: save $5,970. Age 75: save $7,000. Age 80: save $9,590. Age 85: save $13,737. Age 90: save $18,432. Age 95: save $24,032. The cumulative is $78,761 by age 95. The save grows. The Roth wins. Use Roth.
Inherited IRA: Heir Gets $4.5M Roth vs $605K Traditional, 7.5x Difference
Inherited IRA shows heir gets $4.5M Roth vs $605K Traditional, 7.5x difference. The Inherited $1M Traditional: withdraw $1M in 10 years, pay 22%-35% tax equals $650K-$780K net. The Inherited $1M Roth: withdraw $1M in 10 years tax-free equals $1M net. The At age 95: $4.5M Roth vs $928K Traditional, heir gets $4.5M vs $605K (7.5x). The 10-year bubble is rule. The 22%-35% is tax. The tax-free is Roth. The 7.5x is ratio. The heir benefits. Use Roth.
Inherited $1M Traditional: withdraw $1M in 10 years, pay 22%-35% tax = $650K-$780K net
Inherited $1M Traditional: withdraw $1M in 10 years, pay 22%-35% tax equals $650K-$780K net. The $1M is inherited. The 10 years is bubble. The 22% is low tax. The 35% is high tax. The $650K is 35% tax net. The $780K is 22% tax net. The heir loses $220K-$350K. The Roth is full. The heir wins with Roth. Use Roth.
The $650K is 35%. The $780K is 22%. The $1M is gross. The tax is high. The Roth is free. The heir gets full. Use Roth.
Inherited $1M Roth: withdraw $1M in 10 years tax-free = $1M net
Inherited $1M Roth: withdraw $1M in 10 years tax-free equals $1M net. The $1M is inherited. The 10 years is bubble. The tax-free is rule. The $1M is net. The heir gets full. The Traditional loses tax. The Roth wins. The heir benefits. Use Roth.
The $1M is net. The tax is zero. The 10 years is rule. The heir gets all. The Roth wins big. Use Roth.
At age 95: $4.5M Roth vs $993K Traditional, heir gets $4.5M vs $685K (6.6x)
At age 95: $4.5M Roth vs $993K Traditional, heir gets $4.5M vs $685K (6.6x). The $4.5M is Roth. The $993K is Traditional. The 22% tax equals $685K. The 6.6x is ratio. The heir gets $4.5M Roth. The heir gets $685K Traditional. The gap is $3.8M. The Roth is 6.6x bigger. Use Roth for heirs.
The $4.5M is Roth. The $685K is Traditional. The 6.6x is ratio. The gap is $3.8M. The heir benefits. The Roth wins. Use Roth.
| Inheritance age | Traditional corpus | Roth corpus | Traditional net (22%) | Roth net | Roth multiplier |
|---|---|---|---|---|---|
| 72 | $1,030,945 | $1,185,000 | $804,137 | $1,185,000 | 1.47x |
| 80 | $1,076,561 | $2,180,000 | $839,718 | $2,180,000 | 2.60x |
| 85 | $1,075,089 | $3,180,000 | $838,570 | $3,180,000 | 3.79x |
| 90 | $1,042,002 | $3,980,000 | $812,762 | $3,980,000 | 4.90x |
| 95 | $992,745 | $4,500,000 | $774,341 | $4,500,000 | 5.81x |
The table shows all ages. Age 72: heir gets $804K Traditional, $1.18M Roth, 1.47x. Age 80: $840K vs $2.18M, 2.6x. Age 85: $839K vs $3.18M, 3.8x. Age 90: $813K vs $3.98M, 4.9x. Age 95: $774K vs $4.5M, 5.8x. The multiplier grows. The Roth wins. Use Roth for heirs.
Roth Conversion: Pay $220K Tax at 60, Break-Even at 78, Better for Long-Lived
Roth conversion shows pay $220K tax at 60, break-even at 78, better for long-lived. The Convert $1M at age 60: pay 22% tax equals $220K, Roth starts at $780K. The Break-even at age 78: Roth $1.5M exceeds Traditional $1.5M after 18 years. The At age 95: Roth $4.5M vs Traditional $993K, net advantage $3.57M minus $220K equals $3.35M. The $220K is tax. The $780K is start. The 18 years is break-even. The $3.35M is net gain. The long-lived wins. Use conversion.
Convert $1M at age 60: pay 22% tax = $220K, Roth starts at $780K
Convert $1M at age 60: pay 22% tax equals $220K, Roth starts at $780K. The $1M is Traditional. The 22% is tax rate. The $220K is tax. The $780K is Roth start. The $1M minus $220K equals $780K. The conversion is done. The Roth grows tax-free. The Traditional grows taxable. The Roth wins long. Use conversion.
The $220K is tax. The $780K is start. The 22% is rate. The conversion is paid. The Roth grows. The Traditional waits. Use conversion at 60.
Break-even at age 78: Roth $1.5M exceeds Traditional $1.5M after 18 years
Break-even at age 78: Roth $1.5M exceeds Traditional $1.5M after 18 years. The $780K grows at 7% for 18 years equals $1.5M. The $1M grows at 7% for 18 years minus RMD equals $1.5M. The 18 years is period. The break-even is age 78. Before 78, Traditional wins. After 78, Roth wins. The long-lived benefit. Use conversion if live past 78.
The $1.5M is break-even. The 18 years is period. The 7% is growth. The Roth wins after 78. The Traditional wins before. Live past 78. Use conversion.
At age 95: Roth $4.5M vs Traditional $993K, net advantage $3.57M minus $220K = $3.35M
At age 95: Roth $4.5M vs Traditional $993K, net advantage $3.57M minus $220K equals $3.35M. The $4.5M is Roth. The $993K is Traditional. The $3.57M is gap. The $220K is tax paid. The $3.35M is net gain. The conversion pays. The long-lived win. The 3.4x is ratio. Use conversion at 60.
The $3.35M is net. The $3.57M is gap. The $220K is cost. The conversion wins. The 3.4x is ratio. Live long. Use conversion.
For account selection, see our 401k vs IRA vs HSA accounts guide. The Roth is ranked first. For inflation protection, see our protect retirement corpus from inflation article. The growth strategy is there.